Raised $60 million in 4 hours, valuation approaching Ethereum, Algorand into the rookie

Algo is the original token of the Ethereum competitor Algorand and is committed to building a borderless economy. After the recent Dutch auction, investors speculate that this blockchain startup will become an important player in the field of cryptocurrency.

The Algorand Foundation, which manages the PoS blockchain agreement, announced on Wednesday that the foundation raised more than $60 million in its token sales.

Within four hours, the Algorand Foundation sold 25 million Algo for $2.4. These tokens are currently being transferred to the buyer's wallet.

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Algorand plans to carry out a series of sales activities to allow these tokens to gradually enter the market. It is estimated that 600 million tokens will be auctioned each year until the total supply reaches 10 billion in the next five years. Assuming the price is stable, investors are valued at $24 billion for this ambitious project. As of press time, Ethereum's market capitalization was about $29.7 billion, ranking second.

Algorand claims to have comparable transaction speeds and low latency (less than 5 seconds) to global payment networks such as Mastercard and Visa.

Today, Algorand issued an announcement that its main network was officially launched along with this week's auction. The announcement states:

“The Algorand block is the first public blockchain that simultaneously implements decentralization, scalability, and security, overcoming the impossible blockchain impossible triangle. Other projects need to be forced to decentralize and scale. Compromise, but Algorand overcomes seemingly insurmountable obstacles that undermine industry growth and have hampered mainstream applications in the last decade."

Juan Villaverde, head of the Weiss Cryptocurrency Ratings rating team, said the technology behind the project is admirable. But he warned of this unreasonable valuation:

“The money that is distributed and the funds raised are meaningless to us. Its implied valuation is close to the world’s most successful and mature smart contract platform, Ethereum. In view of this, the token is on the online exchange. It will definitely go lower, so we want to know if the interests of the holders are protected."

However, On Yavin, founder and CEO of research firm Coinintelligence, disagrees.

“For this project, the valuation may be correct because there is a great and serious vision, and a professional, dedicated team is doing things.”

Algorand was founded by Silvio Micali, a professor at the Massachusetts Institute of Technology and a Turing Award winner. There are many elites on his team, including distributed computing pioneer Maurice Herlihy and former Ethereum virtual machine developer Greg Colvin. Greg Colvin will be responsible for creating atomic swaps, smart contracts and virtual machines for Algorand.

Colvin said:

“We have entered the design process, and given the cryptographic skills we have, we really want to push this technology forward. Silvio has solved the important scalability issues with blockchain, which is very exciting.”

In addition to token sales on Wednesday, Algorand has received $66 million from investors such as Union Square Ventures and Pillar Venture Capital over the past year.

The startup had an acquisition deal with Facebook last year. Informed sources told the Financial Times that the deal could not be reached, in part because the social media giant might gain some control over the project and question the degree of decentralization of its cryptocurrency project Libra.

It remains to be seen whether the project is truly beyond the market capitalization of most mainstream currencies. In any case, while judging whether to invest, it is important to remember that investment is risky and you need to be cautious.

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